Williamson Magor & Company Limited (WILLAMAGOR) has submitted its Integrated Financial Filing for the quarter and financial year ended 31 March 2025. The company reported a consolidated net loss for the year.

Key financial highlights (Standalone) for the period are:

• Total Revenue from Operations stood at ₹48.99 lakh for the quarter ended 31 March 2025 and ₹2.89 crore for the financial year ended 31 March 2025.
• Total Income was ₹45.18 crore for the quarter ended 31 March 2025 and ₹47.55 crore for the financial year ended 31 March 2025.
• Profit before Tax was ₹29.30 crore for the quarter ended 31 March 2025, but the company recorded a Loss before Tax of ₹229.87 crore for the financial year ended 31 March 2025.
• Profit after Tax for the quarter ended 31 March 2025 was ₹15.40 crore, while the Loss after Tax for the financial year ended 31 March 2025 was ₹181.39 crore.
• Basic and Diluted Earnings per Equity Share were ₹14.06 for the quarter and ₹(165.56) for the full financial year.

Auditors, V. Singhi & Associates, issued a Qualified Opinion on the standalone and consolidated financial results, highlighting several critical issues:

• Material Uncertainty Related to Going Concern: The company has defaulted on repayments to financial institutional lenders and others. Auditors noted that the use of the going concern assumption is not adequately supported due to these uncertainties.
• Non-recognition of Interest Expense: The company has not recognized interest expense on secured borrowings from InCred Financial Services Limited (formerly KKR India Financial Services Private Limited) since August 2019, and from HDFC Bank Limited since April 2021. Additionally, interest expense on unsecured inter-corporate borrowings amounting to ₹46.42 crore for the year ended 31 March 2025 (including ₹10.68 crore for the quarter ended on that date) has not been recognized, understating finance costs and liabilities. The company is negotiating for interest waiver.
• Default in Repayment of Principal and Payment of Interest of Debt Securities: The company defaulted on Non-Convertible Debentures issued to IL&FS Financial Services Limited. A one-time settlement agreement for ₹49.67 crore was signed, paid by a group company, with the balance to be settled by selling collateral (Neemrana Land), which has not yet materialized.
• Balances of Receivables, Unsecured and Secured Loan Creditors: Certain balances lack reconciliation and confirmation, making adjustments unascertainable.
• Default in Payment of Interest and Repayment of Principal of Secured and Unsecured Loans: Ongoing defaults on various secured and unsecured loans.
• Recognition of Deferred Tax Assets: The company recognized Deferred Tax Assets of ₹140.36 crore as of 31 March 2025. However, the auditors question the reasonable certainty for recognizing these assets given the material uncertainty related to the company's ability to continue as a going concern.

The company also disclosed significant outstanding defaults on loans and debt securities:

• Loans/revolving facilities from banks/financial institutions: Total outstanding ₹164.78 crore, with the entire amount of ₹164.78 crore in default as of date.
• Total financial indebtedness of the listed entity, including short-term and long-term debt, stands at ₹554.23 crore.

Matters emphasized by the auditors (without modifying their opinion) include:

• The cancellation of the company's Non-Banking Finance Company (NBFC) registration by the Reserve Bank of India (RBI) due to erosion of net worth. A writ petition for restoration of the license is subjudice before the Calcutta High Court.
• Claims filed by the company against McNally Bharat Engineering Company Limited (MBECL), which is undergoing Corporate Insolvency Resolution Process (CIRP). The company's claim of ₹159.66 crore was admitted only to the extent of principal amounting to ₹13 crore.

Despite the adverse financial performance and liquidity issues, the management expressed confidence that with lenders' and promoters' support and various measures, the company will be able to generate sufficient cash inflows and improve its net working capital position to discharge its financial obligations. Accordingly, the Board of Directors prepared the results on a Going Concern Basis.